M&T Bank is slashing 747 Connecticut jobs at People’s United Bank, or 13.3% of its workforce, as part of a merger between the two entities.
In February this year, New York-based M&T Bank agreed to acquire People’s United in an all-stock deal valued at $7.6bn.
The combined business is expected to have nearly $200bn in assets and a network of 1,100 branches. People’s United shareholders will receive 0.118 of M&T common stock for each share they own.
The deal already secured shareholders’ nod and is slated to complete in the fourth quarter of 2021.
The retrenchment exercise will be carried out starting 1 October and end in May of next year, affecting over 16 locations across Connecticut.
Around 661 of the layoffs will be in Bridgeport, where People’s United is based, while 42 will be from the Hartford area, according to the federal Worker Adjustment and Retraining Notification.
An M&T spokesperson stated: “We believe this is necessary to remain competitive within the broader marketplace, reduce costs over the long term and avoid overlap following transaction close.
“While these are difficult steps to take, we are confident that the streamlining will help ensure we are delivering the services our customers need, where they need it, while retaining jobs for our dedicated employees.”
M&T also said that Bridgeport would serve as the Northeast regional headquarters of the consolidated group.
It added that 79% of People’s United staff would be retained after the takeover. They include branch as well as customer service employees.
Governor Ned Lamont’s office slammed the redundancies.
“The governor and his administration will remain in contact with all parties to further minimise job loss and ensure the bank fosters a true partnership with the city of Bridgeport and has a presence in Bridgeport’s communities,” Lamont’s office was quoted as saying by Associated Press.